East Mississippi Community College

ECON 2123

Chapter 22-LEGAL ASPECTS OF SUPPLY CHAIN MANAGEMENT

TRUE/FALSE

1)The term special bailee is an historical term, but a special bailee has no greater duty than any other bailee.

2. The storage of goods in a warehouse and the shipment of goods by a common carrier are examples of special bailments.

3. To be engaged in warehousing, an enterprise must have appropriate storage buildings.

4. A warehouser is an insurer of goods.

5. The rights and duties of warehousers are regulated by the UCC.

6. A public warehouser has a lien against the goods stored for reasonable costs incurred from the storage.

7. A warehouse receipt is considered a document of title.

8. A warehouse receipt may be either negotiable or nonnegotiable.

9. A transferee of a nonnegotiable warehouse receipt acquires only the title and rights that the transferor had actual authority to transfer.

10. A negotiable warehouse receipt states that the goods received will be delivered to the bearer or to the order of any named person.

11. A negotiable warehouse receipt that provides for delivery of the goods to the order of Jill Jones may be negotiated by delivery of the document to the purchaser.

12. If a warehouse receipt provides for the delivery of the goods “to the bearer,” the receipt may be negotiated by transfer of the document.

13. The rights of a holder of a duly negotiated warehouse receipt are extinguished by the warehouser's surrender of goods to the depositor.

14. The purchase of a warehouse receipt by due negotiation eliminates all prior claims.

15. Field warehousing is the storage of farm crops in the field where they have been grown.

16. General contract law determines whether a limitation clause is a part of the contract between the warehouser and the customer.

17. Unlike warehouse receipts, bills of lading and airbills are documents of title.

18. Bills of lading for intrastate shipments are governed by the UCC, while those for interstate shipments are regulated by the Federal Bills of Lading Act.

19. A bill of lading will be negotiable if its terms are that the goods are to be delivered to "bearer" or to "the order of" a named person.

20. The rights of a transferee of a negotiable bill of lading are defeated if the goods have been stopped in transit.

21. If a common carrier delivers goods to the wrong person, the carrier is liable for breach of contract and for the tort of conversion.

22. A common carrier is liable for all delays in the delivery of goods.